Polarcus narrows 2Q loss as revenues dive

Polarcus, an offshore geophysical company, has tightened its loss during the quarter compared to a year earlier period despite drop in revenues. 

The geophysical company’s net loss for the quarter was $11.2 million, versus $78.3 million in the corresponding period last year.

Polarcus’ revenues dropped to $67.9 million during the quarter, compared to $91.7 million in the year ago quarter.

Further, the company’s capital expenditure during the quarter increased to $2.2 million from $1.7 million in the 2Q 2015. The year to date capital expenditure includes purchase of a complete in-sea seismic acquisition system, a five-year classification survey for one vessel and certain other marine capital equipment.

Utilization increased to 91% during the quarter from 80% in the same period last year. Contract utilization increased to 76% from 71% in 2Q 2015, and Multi-Client utilization decreased to 15% from 19% in 2Q 2015.

During the quarter, the company conducted work on one Multi-Client project, offshore Brazil, with acquisition started and completed in the quarter.

Polarcus secured three new contract awards since the end of the last quarter. Of the recent contract awards, two are for countries in which Polarcus has not previously operated, and one project will be acquired with the company’s new XArray technology.

Seismic market ‘continues to be challenging’

According to Polarcus, the marine seismic market continues to be challenging with continued subdued exploration spending by oil companies and lower tender activity across all geographic regions. There is reduced prefunding available from prospective clients for Multi-Client projects and competition for proprietary contracts remains high, the company said.

The estimated value of backlog measured at the end of the quarter is $150 million, including contracts awarded post-quarter end.

Offshore Energy Today Staff